Williams Cos. raises '08, '09 earnings forecast

For 2008, the company raised its earnings per share forecast to a range of $2.30 to $2.80, up from its May 1 forecast of $1.70 to $2.10. Analysts polled by Thomson Financial expect, on average, earnings per share this year to be $2.21.

Williams also raised its profit forecast for 2008 to $3.1 billion to $3.65 billion, up from $2.5 billion to $3 billion.

For 2009, the company raised its earnings per share forecast to a range of $2.05 to $2.90, up from $1.80 to $2.30. Analysts expect earnings per share next year of $2.48.

Williams also raised its profit forecast for 2009 to $2.9 billion to $3.8 billion, up from $2.6 billion to $3.2 billion.

The higher earnings forecasts reflect the company's outlook for commodity prices. For 2008 the company expects natural gas prices of $9 to $10.50 per million cubic feet equivalent; for 2009 the company expects $8 to $10.50 per million cubic feet equivalent.

In addition, Williams said it is increasing its planned capital expenditures for this year and next year.